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Oct 23
2017

Small Changes Matter

Posted by: Steve Marr

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Small adjustments may have major impact on businesses or life. I attended a presentation where I heard a speaker whose name I cannot remember. He shared the suggestion that if we made a habit of parking at the far side of a parking lot when we go to work or shop, the extra walking would reduce our weight one pound a year for the average American. That’s ten pounds in ten years. Most of us struggle with weight reduction and would love to lose ten pounds or more. Embracing this small change over a long period of time makes a significant difference.

 

I eat out a fair amount, partly for business reasons.  I developed the habit of ordering water with most of my meals. At home I drink water anyway so this really isn’t a big change. I save an average of $2 a meal when I skip tea, coffee, or soda. This amounts to $6 per week, $300 per year, or $3,000 over ten years. This matters to my budget. 

I rented a list of prospects for franchise marketing which I do part time.  I tested the list by writing three different sales pitches and sent each to a different test audience.  The highest response rate was .007%, the lowest .005%. A .002% difference may seem small, but I sent it to a group of 50,000. The increase in performance netted 100 more responses. This was a significant increase that meant the project generated cash instead becoming an expense.

I worked with Mike in developing some productivity improvements. Our first pass produced a 3% gain in profitability. Mike was not impressed.  I pointed out that 3% on $800,000 gross business would result in $24,000 in net annual savings. Not a bad return considering the joint time investment between Mike and me was 25 hours. It meant we made about $750 dollars an hour. Furthermore, the savings would continue in the future. 

King Solomon wisely wrote, “Dishonest money dwindles away, but whoever gathers money little by little makes it grow.” (Proverbs 13:11, NIV) This is an important principle to remember.  What may seem like a small savings at the time, may grow great dividends in the future. 

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